Industry Insights

Global polypropylene market demand was USD 85.88 billion in 2013. Strong end-use industries demand is slated to impact positively the global polypropylene market over the forecast period. Polypropylene has several applications spread across numerous industries, making it an indispensable product.

The industry is closely integrated with the global hydrocarbon industry. Propene, a refinery by-product and one of the most important petrochemical feedstock is the raw material for polypropylene. Thus, volatile oil and natural gas prices negatively impact the global market.

Such volatility affects profitability and operational costs, thus hampering the global polypropylene market growth. Stringent regulations and directives against plastics usage owing to their hazardous impact on the environment during production and disposal are anticipated to retard the global market.

Agencies such as FDA, REACH and ASTM have issued several directives concerning polypropylene usage and manufacturing. FDA and REACH have issued regulations governing the polypropylene film applications in food packaging. REACH has issued regulations governing the raw material used and the additives added in the manufacturing process.

Growing demand for light-weight vehicles and better fuel efficiency is slated to drive the global polypropylene market over the forecast period. Previously, steel played an important role in automobiles manufacturing. However, with the growing thermoplastic acceptance in the automobile industry, steel has been replaced by thermoplastic polymers such as polypropylene. Polypropylene products are used in multiple aspects during automobile production.

Massive infrastructure initiatives in the developing regions such as Asia Pacific and Central & South America are projected to positively impact the global polypropylene market. Developing economies such as China, India, Brazil, Mexico, and Argentina are expected to witness substantial growth in the infrastructure sector over the forecast period.

Governments in developing economies have earmarked significant funds for infrastructure development. Steel used to play a critical role previously in construction activities. However, in recent years, thermoplastics such as polypropylene have started to substitute the conventional construction materials owing to several benefits. These benefits include lower weight, easier maintenance, and lower cost of production. Thermoplastic usage in construction has other additional benefits as well such as smoother logistical operations, better flexibility in applications and easier procurement.

Emerging regions are touted to witness strong polypropylene applications demand owing to several key factors. These key factors include government initiatives to encourage infrastructure development, rapid industrialization, urbanization and increasing disposable income. Other key applications include textiles and film applications.

Film applications are projected to witness the highest CAGR with 5.7% over the forecast period ahead of injection molding and textiles. Injection molding dominated the global polypropylene market valuation over the recent years. Similar to market demand, film applications are estimated to witness the highest market valuation growth over the forecast period followed by injection molding.

Regional Insights

Asia Pacific dominated the global polypropylene market ahead of Europe and North America with nearly half the market share. Robust demand from the end-use industries in the emerging regions is expected to drive the regional markets.

Government initiatives to develop infrastructure and encourage urbanization are presumed to offer abundant opportunities to the industry participants. Increasing disposable income and standard of living in these areas is another key factor impacting the regional markets.

Developed regions such as North America and Europe are anticipated to witness a slightly moderate growth owing to their end-use market saturation. Asia Pacific and Central & South America are projected to witness the highest CAGR of 8.8% and 8.7% respectively over the next seven years. Developing economies such as China, India, Brazil, and Argentina are expected to lead their respective regional market.

Synthetic and Bio-Based Polypropylene Market Share Insights

The polypropylene market fragmented and is characterized by numerous producers. The industry is very cost sensitive, thus urging industry participants to adopt a low-cost strategy. Polypropylene market has low white space and is highly capital intensive in nature. Major manufacturing technologies are licensed out by a handful of major industry participants. Such market dynamics are not favorable for attracting new entrants.

Prominent industry participants are investing heavily in R&D initiatives to improve their product portfolio and increase their production capacity. Mergers & acquisitions are a commonplace in this industry with numerous companies forging partnerships and alliances with each other. Such steps are being taken by the companies to prioritize their business goals and cater to the burgeoning demand in the emerging regional market such as Asia Pacific and Central & South America.